14Annual rate for registered clubs
(1)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year do not exceed $200,000, no tax
is payable on the profits.
(2)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $200,000, but do not
exceed $1,000,000, the following provisions apply—
(a)
in the 2006 tax year—tax is payable on so
much of those profits as exceeds $200,000 at the rate of tax rate 1 for the
tax year,
(b)
in the 2007 tax year and subsequent tax
years—no tax is payable on the profits.
(3)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $1,000,000, but do not
exceed $1,800,000, the following provisions apply—
(a)
in the 2006 tax year—tax is payable on
$800,000 of those profits at the rate of tax rate 1 for the tax year, and on
so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for
the tax year,
(b)
in the 2007 tax year and subsequent tax years,
tax is payable—
(i)
on the taxable component of the first $1,000,000
of those profits at the rate of tax rate 1 for the tax year,
and
(ii)
on so much of those profits as exceeds $1,000,000
at the rate of tax rate 2 for the tax year.
(4)
For the purposes of subsection (3), the taxable component of
the first $1,000,000 of the profits of a registered club from gaming machines
kept on the premises of the club is $1 for every $1 by which profits from all
gaming machines kept on the premises of the registered club in the tax year
exceeds $1,000,000.
Note—
The taxable component of the first $1,000,000 of
the profits of the registered club from gaming machines will vary from $1 (for
a club that has profits of $1,000,001) to $800,000 (for a club that has
profits of $1,800,000). The first $200,000 of profits is always tax
free.
Example. If the profits of a club from all
gaming machines kept on the premises is $1,200,000, the taxable component of
the first $1,000,000 of the profits is $200,000. Accordingly tax is payable on
$200,000 of the first $1,000,000 of those profits at tax rate 1 and on the
profits that exceed $1,000,000 (ie $200,000) at tax rate
2.
(5)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $1,800,000, but do not
exceed $5,000,000, tax is payable—
(a)
on $800,000 of those profits at the rate of tax
rate 1 for the tax year, and
(b)
on so much of those profits as exceeds $1,000,000
at the rate of tax rate 2 for the tax year.
(6)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $5,000,000, but do not
exceed $10,000,000, tax is payable—
(a)
on $800,000 of those profits at the rate of tax
rate 1 for the tax year, and
(b)
on $4,000,000 of those profits at the rate of tax
rate 2 for the tax year, and
(c)
on so much of those profits as exceeds $5,000,000
at the rate of tax rate 3 for the tax year.
(7)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $10,000,000, but do not
exceed $20,000,000, tax is payable—
(a)
on $800,000 of those profits at the rate of tax
rate 1 for the tax year, and
(b)
on $4,000,000 of those profits at the rate of tax
rate 2 for the tax year, and
(c)
on $5,000,000 of those profits at the rate of tax
rate 3 for the tax year, and
(d)
on so much of those profits as exceeds
$10,000,000 at the rate of tax rate 4 for the tax
year.
(8)
If the profits from all gaming machines kept on
the premises of a registered club in a tax year exceed $20,000,000, tax is
payable—
(a)
on $800,000 of those profits at the rate of tax
rate 1 for the tax year, and
(b)
on $4,000,000 of those profits at the rate of tax
rate 2 for the tax year, and
(c)
on $5,000,000 of those profits at the rate of tax
rate 3 for the tax year, and
(d)
on $10,000,000 of those profits at the rate of
tax rate 4 for the tax year, and
(e)
on so much of those profits as exceeds
$20,000,000 at the rate of tax rate 5 for the tax
year.
(9)
This section is subject to Part
4.
s 14: Subst 2003 No
34, Sch 2 [4]; 2006 No 50, Sch 1 [1]. Am 2006 No 87, Sch 3.1.